How Do Casinos Make Money?


North America leads the way for having the
most casinos, which was 1,623 the last time
someone counted in 2011.
The U.S. casino gaming industry itself is
huge, with a revenue in 2016 of $73.1 billion.
There are far fewer casinos in the East, but
Macau, China, is home to the biggest casino
in the world in ‘The Venetian’.
It’s mind boggling how big this place is.
Over 10,500,000 square feet (550,000 square
feet for just the casino) you’ll find 4200
slots and gaming tables, 53 bars and restaurants,
private rooms, butlers to follow you about,
shops, gyms, 4 swimming pools, 3,000 guest-rooms,
and of course canals running through the place.
It’s actually owned by the USA’s Las Vegas
Sands Corporation.
How do they afford to ensconce you in such
luxury?
That’s what we’ll find out today, in this
episode of the Infographics Show, How Do Casinos
Make Money?
The simple answer to this question is they
take your money.
They do that by hoping you will gamble, because
in the end, the house always wins.
In 2015, CNN reported that some casinos weren’t
doing as well as expected, only because fewer
people were gambling and going to places such
as Las Vegas just to have a good time.
But let’s forget for now about all the cash
you might spend on food, drinks, shows, rooms
and whatever else is on offer and just concentrate
on the gambling.
The casino always has a statistical edge,
otherwise you wouldn’t be gambling.
This is called The House Edge.
If you look at something like a slot machine,
while one person might win big and only place
a small bet, the machine in the end has a
rate of what it pays out.
This is often a pay-out rate of about 90 percent.
It will always keep some money for itself.
It’s quite simple.
What is happening to our brains is less simple.
It’s proven that gamblers play faster when
they’ve been losing, because they are expecting
that one big win to come.
What these slot machines do to make us keep
playing is keep offering us what are called
“near misses”.
While it’s irrational, the player sees this
as almost winning.
They get a dopamine rush and play on.
Science tells us that what happens in our
brains with these near misses is almost the
same as what happens when we actually win.
It’s exciting after all, until it’s depressing,
and your pockets are empty.
We are also told that these machines are designed
in a way to give small wins often and this
makes the player feel as though they are winning.
Lights will flash during these wins, music
will play, and the player ends up thinking
something good has happened.
The machine payouts are based on thousands
if not millions of spins, so don’t go thinking
just because some poor dude lost a fortune
you will do any better.
Conclusion: Slot machines like cell phones
are made to addict you and they always get
their percentage…if you haven’t hacked
them that is, something that has happened
numerous times in the past.
Let’s move on to roulette.
Ok, so you’ve taken advantage of the free
buffet and your inhibitions are not what they
used to be after you were plied with those
free drinks that the casino was hoping you’d
take.
So, all that money exchanged for chips goes
into the drop box.
This is called the drop.
The casino has an edge on the players of 5.26
percent on the roulette table.
There are even and odd numbers and black and
red colors, but there is also a green 0 and
sometimes another green 00.
As the casino always has this advantage, it
will win.
It doesn’t want to bankrupt you too quickly,
though, so it takes its time.
If you take that aforementioned percentage,
it means that for every one million dollars
bet, the casino will take about $50,000.
It gets trickier, though.
You might be thinking, ok, 5 percent loss,
that’s not so bad.
So, if you sit down with 100 bucks you will
likely leave with about 95 if the law of averages
come into effect.
Not at all.
Let’s say you’re making $5 bets every
spin of the wheel, and the wheel spins about
50 times an hour.
That means in an hour, you bet $250.
You didn’t lose every time of course.
After four hours, you bet around $1000.
The casino takes 5 percent of all the money
bet, meaning you didn’t lose $5 but $50.
The more you play, the more you lose.
Keep betting and you’ll have nothing eventually,
and that is the way it has to go.
You might get ahead and leave, and well done
to you, but with those drinks around, and
the dopamine highs you are getting, you stay.
That’s what the casino hopes, anyway.
If you win big, get out, as fast as you can.
The House Edge on roulette is pretty high,
so while it’s fun, it’s maybe not the
best game to play.
The House Edge on slot machine is very, very
high (about 17 percent), so you should stay
away from them as well.
There’s a reason they were once known as
“One armed bandits.”
Kino is terrible too, for the gambler at least,
with a house edge of 25 percent.
We are told that your best chance of winning
is playing Blackjack or Craps (0.8 percent
house edge) and baccarat (1.06 percent house
edge).
If you learn the correct strategies to play
these games – all of which are online and
easy enough to follow – that will be the
house edge.
If you are not the brightest gambler out there
and follow no strategy at all, the house edge
increases commensurate to the brain cells
functioning properly in your head.
We should say that because of the house edge
existing at all, in the end if you kept on
playing, the casino will take everything.
But let’s talk about Blackjack.
The House Edge with this game is only 0.5
percent, and aint that much better than 5
percent?
The problem here though is that some players
are just bad players, and that poor strategy
as we just said can be costly.
It often puts the house edge up at 2 to 3
percent, and that’s not uncommon.
So, know your strategy.
With a good strategy and lady luck on your
side, as well as a 0.5 percent house edge,
playing Blackjack is a good bet.
With Poker it’s a bit different of course.
In this case, the casino takes what is called
a Rake.
This is quite simple, in that the casino takes
a percent of the pot, somewhere between five
to twenty percent of the pot, with sometimes
a cap on the amount.
You might also just pay for your seat at the
game, or pay by the hour or every 30 minutes.
There are other more nefarious ways casinos
make money, perhaps having beautiful women
milling around which a lot of male players
want to impress.
Then as we said before, there is sometimes
free alcohol.
It can’t be understated what a dozen gin
and tonics does to a person’s strategy,
while people just forget about the consequences
of losing when they are in the midst of a
Jack and Coke high.
The casinos are even arranged at times so
the exits aren’t easy to find, and even
if you do spot the sign, there will be tables
or something in your way before you get to
that exit that might induce you to think you
can win some cash back.
And to top it off, many casinos won’t have
any clocks around.
This is to keep you focused on the game and
not on the time.
A former dealer writing online who once worked
at Harrah’s at Lake Tahoe in Nevada also said
he was trained to exploit the weaknesses in
players, psychologically that is.
He wrote, “I chose to leave, because gaming
exploits the negative characteristics of human
nature to extract as much money from each
customer as fast and as frequently as possible.”
Because, as we said at the start, fewer people
are gambling and just going to places like
Las Vegas for the experience, some casinos
now charge a fortune for once free drinks.
They also do things like hold conventions,
charge more for food, rooms or even parking
spaces.
So, do you
enjoy gambling?
Do you find that you most often win or lose?
Share some of your experiences in the comments!
Also, be sure to check out our other video
called Taboos Around the World!
Thanks for watching, and, as always, don’t
forget to like, share, and subscribe.
See you next time!

100 thoughts on “How Do Casinos Make Money?

  1. I never was in a casino, I think, gambling is stupid, because you will lose anyway^^

  2. You know what they say about gamblers? It's not the winning they're addicted to, it's the losing.

  3. You've got it backwards. The blackjack house edge is negative 0.5%. The PLAYER has the edge. This is why people who are too good at blackjack are banned. They only want sheep at their casino because anyone who knows what they're doing will take money from the house on average.

  4. Last time I walked through Bally's AC it was mostly senior citizens drinking, smoking and pumping their life savings into gaming machines. Looked like a bunch of bent decrepit zombies. Not exactly James Bond territory. It was rather depressing.

  5. my boyfriends family owns the cash creek casino and it just puts money in our pockets 😂😂😂

  6. Going into blackjack at casinos with a strategy is key. I've only been to casinos a handful of times and I only play blackjack. Each time I've been able to leave in the positive rather than losing money.

  7. I have lost thousand of dollars betting online on gambling sites, I started from cs go then moved to bet365.

  8. apparently in Vegas, the slot machine at the entrance are like bait, that always give you wins at first couple round to lure you in, so you can actually make money by only play one or two round at those slot machine and leave and find a different casino

  9. Sexist, very stupid comment at 5:40. “Having lots of beautiful women milling around, that male players want to impress.” Who says female players don’t want to impress them too?

  10. The only way to beat the house every single time……

    Stay home u win what u didn’t loose!!

  11. Key is to just stop playing when you're up. At that point all the mathematics doesn't really matter, house edge or no.

  12. Try USA horse racing scams, where most of the races are 2 place races, with low odds winners.

  13. Here's the explanation: you are playing five rounds of slot, for example, you play four rounds and kept on losing. You try one more round and you win. That makes you think you can win again so you put more money and repeat.

  14. i did my homework about 15 years ago when i went on a short day bus trip to atlantic city. i played blackjack. only had pepsi or coca cola and zero alcohol. i played about 6 hours and only lost about 80$ on the day. so not bad for a fun day. for full disclosure, i did play about 5 minutes on one slot machine (spent about 10-15$ but hit a $50 payout and walked away.) just like you said though, biggest thing is DO YOUR HOMEWORK, DONT DRINK, AND RUN IF U HIT A DECENT PAYOUT.

  15. So I've won 1700 on slots, given the machine 100 dollars back when I went back. So now I am at 1600. Than I won 78 dollars my 3rd time back. So I'm sitting 1678 above. Guess I winning casino guy

  16. Casino is nothing, answer this instead:

    For every dollar you make, I take 30% of that, and then when you use the 70% of the remaining cash, I’ll take another 10% off that. What am I?

  17. Casino is nothing, answer this instead:

    For every dollar you make, I take 30% of that, and then when you use the 70% of the remaining cash, I’ll take another 10% off that. What am I?

  18. The only people who would wonder how a casino makes money are people who have never been in a casino

  19. ‘Running a casino is like robbing a bank with no cops around.’

    Robert de Niro ‘Ace’ in the film Casino (1995)

  20. They should count online casinos also there are plenty of those especially cs:go skin sites

  21. Casinos the only place where people voluntarily go to get ripped off and get their money stolen

  22. Just sit at the roulette betting only a couple of dollars and getting the free drinks

  23. Last time I went to Vegas me and my ex made around $360 in one night on slots in little wins ($30 to $100 range). Harrahs and NY NY have loose slots.

  24. I work programing and giving maintenance to slot machines around my country (Mexico) so I can give an opinion about not-so-big casinos. I think some folks there are "paying for the experience"- they become friends with other players, the dealers, hosts and whoever they find there (even me sometimes) so they kinda enjoy themselves even if they lose. There is a lot of retired folks who go there mostly to socialize- some are even wise in the way they gamble, so they only allow themselves to lose a bit and then they just stay around chillin' with other players.

  25. I want to work in a casino as a bartender im going to high school now and going to college in less then years

  26. I have spent a long time investigating earning games and found a fantastic website at Gamer roadmap rundown (google it if you're interested)

  27. If u go to the casino make sure to play responsible and dont play online lost like 200 online it is not worth it. Just play for fun not to win

  28. thats the point.. if you win big or low… get out as fast as you can… if you are play regular keep lowest possible budget it will keep small wins for sure.. never bring money or cc which is higher than that fixed budget…

  29. Here’s my mentality if I go to a casino. My favorite game to play is Blackjack, and for instance I walk in prepared to lose say $500. Why would I gradually bet and dwindle away my money that I know I’m going to lose anyway? But if I bet it all at once, I either walk away broke or twice as wealthy as I walked in with. And with blackjack it’s different I think, it’s a game of skill. Unlike the totally random chances of slots and roulette, in blackjack you can nudge your chances with smart plays.

  30. As i understand it, cellphones themselves aren't designed to be addictive but most of their apps ^^

  31. As a casino slots manager..I gotta laugh at most of the comments….
    Casinos don’t take anyone’s money. People use their money as toys and willing put it into machines or on tables without a gun to their head. If people don’t gamble at a casino, they will happily spend that money on Powerball or scratch off tickets.
    Casino’s don’t give a shit if you win because every machine payout is insured. We like it when someone hits big…that is the best advertising that money can buy…we just pay the insurance premium.
    Casino’s make their money on the laws of averages…exactly the same as insurance companies.
    Gambling isn’t an addiction…it is poor financial judgment…pure and simple.
    Casino’s are one of the most heavily regulated industries I know of with intensive federal and state oversight.
    The people who bitch about getting ripped off are just shitty gamblers.
    It’s no different than fishing…you don’t go “catching “…you go fishing.
    ….you don’t go “winning “…you go gambling.
    Just because you buy a fishing pole and bait…doesn’t guarantee you will catch a fish. The lake doesn’t owe the fisherman anything…it’s the fisherman’s decision to go try to catch the big one.

  32. Poker is diffrent, casino take money from rakes, but you take money if ur smater then the opponment, i know i know that you can still loose alot, but the thing in poker is how to win big and how to loose small

  33. The largest casino in the world is actually Winstar Casino in Texas. I work for the tribe thar owns it.

  34. People say im hot and I gambl with hot girls never win because my pokes are allways 🐌

  35. 2:01 that's like saying you "almost saw your dad" in a crowd but it was just sum1 similar

  36. I find nothing entertaining or relaxing at Casinos. Love the food shows and the food. The rest sound the light and people give me a freaking headache. I do agree and thought that I work too damn hard for my money to give it away.

  37. Were you aware of the tricks the casinos use? Do you go there to make money or just to have fun?

  38. When you go to Vegas for example and gamble you go for fun. You already know you are going to loose the money, the point is to have a great time and enjoy your time there. Just don't go overboard.

  39. The best time to place a bet in a casino is never. The best time to leave is as soon as humanly possible. It's a mathematical fact.

  40. 😂😂🤣🤣I was born in Las Vegas and it's true we just take people's hard earned money

  41. Without having the vid watched:
    People Go in, Bet Money,loose IT,leave IT there, ans they keep it?

  42. Have u noticed that they also don’t have any chairs for u to sit in except in front of tables or machines lol. This video shud be req to watch before u enter any casino, poor old ppl getting scammed out of their retirements

  43. Another thing: just like online casinos, casinos give you chips to play with instead of cash directly. This way, you are more disconnected from your money so you don't realize how much you have actually played. Notice how this "in-game currency" is pretty similar to in-game currencies in video games that employ micro-transactions and/or lootboxes. Oh wait… Did I just?? Yes, I did!!! 😉

  44. I can't believe this is real .I just received $30,000 from expeditetools,com through hack transfer they did for me .

  45. I don't enjoy gambling. I only go if a friend or family member wants to go. I only gamble $20 and once it is gone I am done. The amount I start with is my base line. If I have less than I started with then I am losing, regardless of if I am winning at a game. If I win more than I started with I stop playing and consider that an overall win.

  46. Just play with house money the original 500 you came to the casino to gamble with, if you win you win and if you lose you lose hahah it's like a video game

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